The Ethics Institute of SA (EthicsSA) will be one of the first recipients of Siemens' $100 million integrity initiative to promote clean markets.
Following the company's acknowledged misconduct in its global business and a World Bank (WB) investigation into corruption in a Russian project, involving a Siemens subsidiary, the company and the WB agreed on a comprehensive settlement in 2009.
According to the WB, the settlement includes, among other things, a commitment by Siemens to pay $100 million over the next 15 years to support anti-corruption work.
“Siemens will provide funds to organisations and projects aimed at combating corruption through collective action, training, and education.”
Chosen one
Around 300 non-profit organisations from 66 countries applied for funding during the first round, according to the company.
“An initial tranche of $40 million will now be distributed to more than 30 initiatives from over 20 countries that have been selected.”
EthicsSA is one of these initiatives and it will use the funding on a project aiming to capacitate African business networks with the implementation of anti-corruption initiatives and good governance practices.
Siemens says business networks and individual businesses seldom have the expertise to implement internationally developed anti-corruption and good governance guidelines, standards and initiatives.
“The EthicsSA project will attempt to address these challenges, while building local capability. It will aim to reduce corruption from a ground level, and implement collective projects that will have a positive impact on an ethical business climate and service delivery.”
Over and above
Siemens SA CEO Stuart Clarkson says in terms of compliance systems and internal controls, the company has a corporate disciplinary committee, a compliance helpdesk, and a comprehensive anti-corruption programme.
He says it wants to contribute towards the establishment of a national consensus through the co-ordination of sectoral strategies against corruption; and share information and best practice on sectoral anti-corruption work.
“We want to advise government on national initiatives on the implementation of strategies to combat corruption.”
Local corruption
Last month, the IT contract between Siemens and the Department of Labour (DOL) to deliver IT systems was put under investigation.
Labour Parliamentary Portfolio Committee chairman Elleck Nchabeleng said several matters around the controversial contract need to be delved into due to the many irregularities that arose in a KPMG diagnostic report.
He adds that the report indicated deeper issues that are, as yet, to be uncovered.
At a committee meeting last week, the DOL said it would not renew its contract with Siemens to deliver its IT systems and will negotiate an early termination of the contract for October.
“I understand that the entire file is now being handed over to Scopa [Standing Committee on Public Accounts] for investigation,” says Democratic Alliance shadow minister of labour Ian Ollis.
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